An unparalleled well-regulated and transparent platform
The Mauritius IFC boasts more than two decades of track record in cross-border investment and finance and offers an unparalleled well-regulated and transparent platform.
As an internationally recognised jurisdiction of repute, the Mauritius IFC is home to international banks, legal firms, corporate services, investment funds and private equity funds.
The financial services sector in Mauritius dates back to the 17th century, when the island played a pivotal role as a regional hub for payments and settlements, facilitating trade among merchants.
The turning point for Mauritius’s financial sector occurred in the early 1990s. With India’s economic liberalization in 1991, the stage was set for significant developments in Mauritius. In 1992, the Mauritius Offshore Business Activities Act (MOBAA) was introduced, laying the foundation for the burgeoning offshore sector.
In 1994, the Mauritian government took a crucial step by abolishing foreign exchange controls, suspending the Foreign Exchange Control Act. This decision was pivotal as it allowed for the seamless repatriation of capital, boosting investor confidence.
Continuing its commitment to fostering a conducive environment for foreign investment, Mauritius introduced the concept of a deemed foreign tax credit in 1996. This innovative approach simplified the tax treatment of foreign investment returns, making it more attractive for international investors.
The early 2000s marked a transformative period for Mauritius’s financial landscape. In 2001, the MOBAA was replaced by the Financial Services Development Act, reflecting the nation’s ambition to establish a stable and reputable financial centre. Concurrently, the Financial Services Commission (FSC) was established to take over regulatory and supervisory responsibilities from MOBAA. Simultaneously, the Financial Services Promotion Authority (FSPA) was established to actively promote the non-banking financial services sector.
Further reforms in the financial sector took place in 2007 with the adoption of the Financial Services Act, followed by refinements in 2010. This legislation streamlined the regulatory framework for the global business sector by differentiating between Mauritian companies conducting business within Mauritius (domestic companies) and those operating internationally.
A significant milestone was reached in 2015 when the Ministry of Financial Services, Good Governance, and Institutional Reforms was established. Since then, the Mauritian government has embarked on a strategic mission to elevate Mauritius to the status of a full-fledged International Financial Centre (IFC).
Key Factors Contributing to Mauritius’ Ascent as an IFC
Political Stability and Regulatory Framework
One of the fundamental pillars of Mauritius’s success as an IFC is its political stability and robust regulatory framework. The nation has a long-standing tradition of democratic governance, rule of law, and respect for property rights, making it an attractive destination for businesses seeking a secure and predictable environment.
Mauritius has consistently adapted its legal and regulatory framework to align with international standards, ensuring that it remains compliant with global best practices in financial regulation, anti-money laundering (AML), and know your customer (KYC) requirements. The Financial Services Commission (FSC) plays a pivotal role in overseeing the financial sector, ensuring its integrity and transparency.
Double Taxation Treaties
Mauritius boasts an extensive network of double taxation treaties (DTTs) with numerous countries around the world. These treaties provide a favorable tax environment for international businesses and investors, offering relief from double taxation and facilitating cross-border trade and investment.
The DTTs, combined with Mauritius’s relatively low tax rates, have made it an attractive jurisdiction for multinational corporations, investment funds, and entrepreneurs looking to optimize their tax structures while remaining fully compliant with international tax laws.
Mauritius is renowned for its offshore services sector, which includes offshore company formation, trusts, and investment funds. The Mauritius International Financial Centre (IFC) is specifically designed to cater to the needs of global investors seeking offshore solutions.
Global Business License (GBL) companies, a popular choice among international businesses, enjoy advantageous tax treatment and can engage in a wide range of activities, including trading, investment, and holding assets. This flexibility has made GBL companies an ideal choice for businesses looking to establish a presence in the region.
The government of Mauritius actively promotes the country as an investment destination, offering a range of incentives to attract foreign investment. The Economic Development Board (EDB) plays a crucial role in facilitating investment and economic diversification, providing a one-stop shop for investors seeking guidance and support.
Mauritius offers a comprehensive suite of financial services, including banking, insurance, asset management, and capital markets. The country’s financial institutions are well-regulated and adhere to international standards, providing confidence to clients and investors alike.
The Stock Exchange of Mauritius (SEM) provides a platform for listing and trading securities, including equities, bonds, and derivatives, contributing to the development of a vibrant capital market.
Situated strategically between Africa, Asia, and the Middle East, Mauritius serves as a bridge for businesses seeking to expand their reach across these regions. Its favourable time zone (GMT+4) positions it conveniently for conducting business with both Western and Eastern markets.
Mauritius has undeniably emerged as a shining star on the global financial stage. Its commitment to political stability, regulatory excellence, and international cooperation has propelled it into the ranks of premier International Financial Centres. As businesses and investors continue to seek new opportunities and diversify their portfolios, Mauritius remains an attractive and trusted destination, offering a harmonious blend of natural beauty, economic prosperity, and financial expertise in the heart of the Indian Ocean.
When considering where to invest in Mauritius, it’s crucial to conduct thorough research, consult with local experts like Órama Corporate Services, and understand the regulatory and legal aspects of the chosen sector. Additionally, working with professional advisors and can help streamline the investment process and ensure compliance with local regulations.
Call Us Now!
Learn how to leverage Mauritius International Financial Centre for your business advantage.